Easy

Multiple Choice
1. It refers to all persons composing a corporation whether they are stockholders or members.
A. Stockholders
B. Members
C. Corporators ✅
D. Incorporators

2. It is a form of corporation that is limited to the member of a company.

A. Parent Corporation
B. Close Corporation✅
C. Open Corporation
D. Stock Corporation

3. A class of partners that contributes not just his property and money but as well as his service to the
capital of partnership.
A. Capitalist Partner
B. Industrial Partner
C. General Partner
D. Capitalist-Industrial Partner✅

4. A type of business organization that is easy to form because it is subjected to less legal documents.
A. Proprietorship
B. Partnership✅
C. Corporation
D. Organization

5. It is an internal capability that a company perform better than other internal capabilities.

A. Competency✅
B. Core Competency
C Distinctive Competence
D. Functional Competency

True or False(All True lolz �)

6. The primary objective of business-level strategy is to create sources of sustainable competitive

advantage.
7. An organization is a group of people within some structure who possess a common objective, usually
expressed in a mission statement.
8. An industry is a group of organizations competing in a predefined market under similar bases of
competition.
9. A market is a place where potential sellers and buyers meet to exchange resources.
10. An organization operates within an environment that is in a constant state of change.
Medium

Multiple Choice

1. An aspect that should delve on the manufacturing process, operating requirements, plant capacity,
plant layout and etc.
A. Operational Aspect
B. Marketing Aspect
C. Financial Aspect
D. Technical Aspect ✅

2. Refers to temporarily unclaimed funds because of time lag between issuance and subsequent clearing
of checks.
A. Receivables
B. Cash Float ✅
C. Petty Cash
D. Payables

3. It is the most liquid of all current asset items and is used to meet financial requirement so that it must
be carefully planned and controlled.
A. Cash ✅
B. Accounts Receivables
C. Inventory
D. Prepaid Expense

4. Refers to the efficient and effective utilization of cash to attain company objectives.
A. Financial Management
B. Accounting
C. Marketing Management
D. Cash Management ✅

5. It refers to the formulation and administration of plans and policies related to sales on account and
ensuring the maintenance receivables at a predetermined level and their collectability as planned
A. Cash Management
B. Inventory Management ✅
C. Receivables Managemen
D. Current Liabilities Management

True or False

6. The term promoters refers to the activities involved in making a business ready. F=Promotion,
underline promoters.
7. Individuals who undertake the activities in organizing a business until it becomes operational are called
promotion. F=Promoters, underline promotion.
8. Financing stage is where all the factors required for viable business operations are made available in
their optimum combination. F=Assembling, underline Financing.
9. Marketing Plan is a thorough and systematic analysis of all factors to ascertain the viability of an
undertaking. F= Project Feasibility Studies, underline Marketing Plan
10. Marketing Aspects include the research made on actual and potential demand for the product,
competition, selling price and marketing plans. (True)
Hard

Multiple Choice: Encircle the letter of your answer.

1.This is the rate of interest that a borrower is actually charged and is computed by dividing the amount of
interest by the amount received by the borrower.
A. Prime Rate of Investment
B. Fixed Interest Rate
C. Floating Interest Rate
D. Effective Interest Rate ✅

2. An intermediate form of financing between debt and equity.

Does not have any fixed maturity date but usually callable at the option off the issuing firm.
A. Term Loans
B. Bond
C. Preffered Stock ✅
D. Common Stock

3. Refers to the lowest rate charged by banks to their most important and reliable business borrowers.
A. Prime Rate of Investment ✅
B. Fixed Interest Rate
C. Floating Interest Rate
D. Effective Interest Rate

4. Both the owners of the firm and one of its suppliers of long term capital.
have a residual right to the income of the firm.
A. Term Loans
B. Bond
C. Preffered Stock
D. Common Stock ✅

5. This means that regardless of changes in the prime interest rate, the rate stated on a promissory note
is to be observed.
A. Prime Rate of Investment
B. Fixed Interest Rate ✅
C. Floating Interest Rate
D. Effective Interest Rate

True or False: Write true or false, and if false and write the answer that would make the statement correct.

6. Issuer is an entity that owns the receivables and raises funds through the securitization of said assets.
F=Originator
7. Originator is an individual or business entity that purchases the securities to earn interest. F= Investor
8.Asset-Backed Securities are notes or bonds backed by loan paper (mortgage receivable) and accounts
receivable. (True)
9. Cash offering means of selling stocks whereby current stockholders have the first opportunity to buy
the issue. F=Rights offering
10. Public offering is primary market transaction in which a firm sells securities to the general public for
cash. F=Cash Offering